Definition of 'Bona Fide Error'
An error that was unintentional; an "honest error." If a bona fide error is corrected immediately, then a defendant may not be liable for an action.
For example, under the Truth in Lending Act, a creditor can avoid liability by demonstrating that a violation was unintentional and was caused by a bona fide error, including clerical, calculation, computer malfunction or printing error. An error in legal judgment, however, is not ordinarily considered a bona fide error.
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